BlackRock Inc. Acquires New Position in Cardinal Health, Inc. $CAH

Key Points

• BlackRock acquired 26.49 million Cardinal Health shares worth approximately $6.29 billion, giving it an 11.31% stake. Institutional investors and hedge funds collectively own 87.17% of the company.
• Cardinal Health reported quarterly EPS of $2.91, exceeding analysts’ $2.42 estimate, while revenue rose 5.8% year over year to $63.67 billion. The company issued fiscal 2027 EPS guidance of $12.40–$12.60.
• The company declared a quarterly dividend of $0.5158 per share, equivalent to a 0.9% annualized yield. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $265.93.

BlackRock Inc. bought a new position in shares of Cardinal Health, Inc. (NYSE:CAH - Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund bought 26,490,633 shares of the company's stock, valued at approximately $6,293,115,000. BlackRock Inc. owned 11.31% of Cardinal Health at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of CAH. Kornitzer Capital Management Inc. KS increased its position in shares of Cardinal Health by 100.8% in the fourth quarter. Kornitzer Capital Management Inc. KS now owns 18,164 shares of the company's stock valued at $3,733,000 after buying an additional 9,120 shares in the last quarter. Abacus FCF Advisors LLC acquired a new stake in Cardinal Health in the 4th quarter valued at about $7,182,000. Byrne Financial Freedom LLC purchased a new position in Cardinal Health during the 4th quarter valued at about $1,574,000. Belleair Asset Management LLC purchased a new position in Cardinal Health during the 4th quarter valued at about $1,100,000. Finally, Axecap Investments LLC acquired a new position in Cardinal Health during the fourth quarter worth about $2,371,000. 87.17% of the stock is owned by institutional investors and hedge funds.

Cardinal Health Stock Up 0.2%

CAH stock opened at $235.68 on Tuesday. The stock's 50 day moving average is $230.93 and its two-hundred day moving average is $217.34. Cardinal Health, Inc. has a 52-week low of $145.87 and a 52-week high of $258.30. The company has a market capitalization of $54.81 billion, a PE ratio of 32.60, a P/E/G ratio of 1.26 and a beta of 0.49.

Cardinal Health (NYSE:CAH - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported $2.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.42 by $0.49. The firm had revenue of $63.67 billion for the quarter, compared to analysts' expectations of $65.15 billion. Cardinal Health had a net margin of 0.67% and a negative return on equity of 98.53%. The firm's quarterly revenue was up 5.8% on a year-over-year basis. During the same period in the prior year, the company posted $2.08 earnings per share. Cardinal Health has set its FY 2027 guidance at 12.400-12.600 EPS. As a group, sell-side analysts anticipate that Cardinal Health, Inc. will post 12.55 EPS for the current year.

Cardinal Health Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be issued a dividend of $0.5158 per share. This represents a $2.06 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, October 1st. Cardinal Health's dividend payout ratio (DPR) is currently 28.49%.

Analyst Upgrades and Downgrades

CAH has been the topic of a number of recent research reports. Robert W. Baird boosted their price objective on Cardinal Health from $251.00 to $274.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. Weiss Ratings upgraded Cardinal Health from a "buy (b)" rating to a "buy (b+)" rating in a report on Wednesday, August 5th. JPMorgan Chase & Co. boosted their price target on Cardinal Health from $215.00 to $260.00 and gave the stock a "neutral" rating in a research report on Thursday, August 13th. UBS Group upped their price target on Cardinal Health from $274.00 to $280.00 and gave the stock a "buy" rating in a report on Wednesday, August 12th. Finally, Zacks Research downgraded shares of Cardinal Health from a "strong-buy" rating to a "hold" rating in a research report on Friday, June 12th. Fifteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $265.93.

Cardinal Health Profile

Cardinal Health is a multinational healthcare services and products company headquartered in Dublin, Ohio. Tracing its roots to the early 1970s, the company has grown into a major provider of supply chain and distribution services for the healthcare sector. Cardinal Health operates across a range of service lines that support hospitals, health systems, pharmacies, physician offices and clinical laboratories.

The company's core activities include the wholesale distribution of branded and generic pharmaceuticals, the supply and distribution of medical-surgical products, and the provision of logistics and inventory management solutions.

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